Credit For Children

A taxpayer who is allowed a federal child tax credit under section 24 of the Code is allowed a tax credit for each dependent child for whom they were allowed a federal credit unless the taxpayer’s AGI exceeds the applicable threshold

The amount of NC credit allowed is based on taxpayer’s filing status and adjusted gross income, as calculated under the Code

Filing Status

Federal Adjusted Gross Income

Credit Amount per Qualifying Child

Married Filing Jointly or Qualifying Widow(er)

Up to $40,000
Over $40,000 and up to $100,000
Over $100,000

$125
$100
$0

Head of Household

Up to $32,000
Over $32,000 and up to $80,000
Over $80,000

$125
$100
$0

Single or Married Filing Separately

Up to $20,000
Over $20,000 and up to $50,000
Over $50,000

$125
$100
$0

A part-year resident or nonresident may claim a prorated credit based on the percentage of income that is subject to North Carolina tax.

Complete the Credit for Children Worksheet to determine the amount of allowable credit. You must enter the number of dependent children for whom the taxpayer was allowed a federal tax credit and the amount of the credit on Form D-400TC, Part 2, Line 8.